AFP
CTP · Question #697
(Topic 7) Which method of financing would a company use to establish a wholly owned subsidiary to perform credit operations and obtain accounts receivable financing for the sale of products?
The correct answer is B. Captive finance company. See the full explanation below for the reasoning.
Question
- (Topic 7)
Which method of financing would a company use to establish a wholly owned subsidiary to perform credit operations and obtain accounts receivable financing for the sale of products?
Options
- AThird party financing
- BCaptive finance company
- CFactoring department
- DSecuritization
How the community answered
(27 responses)- A4% (1)
- B85% (23)
- C4% (1)
- D7% (2)
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